In a major commitment to in-person banking, Nationwide Building Society has promised to keep every one of its branches open until at least the year 2030.
A Stand Against Bank Branch Closures
The mutual, which now operates the UK's largest single-brand banking network with 605 branches following its takeover of Virgin Money, has extended its 'Branch Promise'. This vow means that every location where Nationwide currently has a branch will remain operational. The pledge also covers the 91 former Virgin Money branches now under its umbrella.
Mandy Beech, Director of Retail Services at Nationwide, stated the decision was driven by clear customer demand. "We see daily how our customers value cash and face-to-face service," she explained. Beech highlighted that ATM usage in the past year had exceeded the previous 2017 peak, a trend she linked directly to the ongoing closure of rival banks' branches.
Rising Demand in a Shrinking Market
Nationwide's move stands in stark contrast to the wider industry trend. Citing figures from consumer group Which?, Beech noted a "massive reduction" in local bank branches across communities. This decline, she suggested, is why Nationwide is also witnessing a significant rise in ATM withdrawals made by customers of other banks at its machines.
The commitment comes two years after Nationwide's acquisition of Virgin Money, a deal that resulted in a £2.3 billion gain for the building society. Following the takeover's confirmation, Nationwide paid its members a loyalty bonus as a "thank you".
Analyst Views on the Virgin Money Deal
Commenting on the original takeover, banking analyst Gary Greenwood of Shore Capital suggested the Virgin Money board lacked confidence in its standalone future. "They were struggling to deliver growth, particularly in mortgages, and were suffering from a funding disadvantage versus larger banking peers," Greenwood said. He added that unexpected costs, like a £130 million cybersecurity investment, had further pressured profits.
Nationwide's chief executive, Debbie Crosbie, said the financial outcome of the deal was no surprise, describing the process as "very thoughtful and very considered".
By making this long-term promise, Nationwide positions itself as a key defender of physical banking services, offering stability for customers who rely on cash and personal interaction amidst a landscape of rapid digital transition and competitor retreat.
